Investor News

AMPYRA® (dalfampridine) Fourth Quarter Net Revenue of
$109.9 Million; Full Year Net Revenue of $366.2 Million

Full Year AMPYRA 2015 Net Revenue Guidance of $405-$420 Million

Full Year 2015 Guidance for R&D Expense of $150-$160 Million

Full Year 2015 Guidance for SG&A Expense of $180-$190 Million

ARDSLEY, N.Y.--(BUSINESS WIRE)--
Acorda Therapeutics, Inc. (Nasdaq:ACOR)
today announced its financial results for the fourth quarter and full
year ended December 31, 2014.

“During 2014, we made major progress across our three core value
drivers: AMPYRA commercial performance, clinical pipeline and business
development. We grew AMPYRA net revenue 21% over 2013; AMPYRA is now
considered a standard of care in MS. Our acquisition of Civitas
Therapeutics added high-potential products and an innovative technology
platform, complementing an already robust pipeline,” said Ron Cohen,
M.D., Acorda Therapeutics’ President and CEO. “In 2015, our focus is on
maximizing AMPYRA sales, advancing our late-stage clinical trials and
continuing to evaluate business development opportunities.”

FINANCIAL RESULTS

The Company reported GAAP net income of $0.3 million for the quarter
ended December 31, 2014, or $0.01 per diluted share. GAAP net income in
the same quarter of 2013 was $6.2 million, or $0.15 per diluted share.
For the full year ended December 31, 2014, the Company reported GAAP net
income of $17.7 million, or $0.42 per diluted share. GAAP net income for
the full year 2013 was $16.4 million, or $0.39 per diluted share.

Non-GAAP net income for the quarter ended December 31, 2014 was $19.7
million, or $0.46 per diluted share. Non-GAAP net income in the same
quarter of 2013 was $18.9 million, or $0.45 per diluted share. Non-GAAP
net income for the full year ended December 31, 2014 was $73.8 million,
or $1.74 per diluted share. Non-GAAP net income for the full year ended
December 31, 2013 was $52.4 million, or $1.26 per diluted share.
Non-GAAP net income excludes share based compensation charges, non-cash
convertible debt interest expense, acquisition related expenses, an
asset impairment, changes in fair value of acquired contingent
consideration and non-cash tax adjustments. A reconciliation of the GAAP
financial results to non-GAAP financial results is included in the
attached financial statements.

AMPYRA®
(dalfampridine) Extended Release Tablets, 10 mg - For the quarter
ended December 31, 2014, the Company reported AMPYRA net revenue of
$109.9 million compared to $84.6 million for the same quarter in 2013.
For the full year ended December 31, 2014 net revenue was $366.2 million
compared to $302.6 million for full year 2013. Full year 2014 net
revenue increased 21% over 2013.

ZANAFLEX CAPSULES®(tizanidine
hydrochloride), ZANAFLEX®
(tizanidine hydrochloride) tablets and authorized generic capsules
- For the quarter ended December 31, 2014, the Company reported combined
net revenue and royalties from ZANAFLEX and tizanidine of $3.2 million
compared to $3.2 million for the same quarter in 2013. For the full year
ended December 31, 2014 combined net revenue and royalties from ZANAFLEX
and tizanidine were $15.3 million compared to $15.1 million for full
year 2013.

FAMPYRA®
(prolonged-release fampridine tablets) - For the quarter ended
December 31, 2014, the Company reported FAMPYRA royalties from sales
outside of the U.S. of $2.3 million compared to $2.2 million for the
same quarter in 2013. For the full year ended December 31, 2014, the
Company reported FAMPYRA royalties from sales outside of the U.S. of
$10.0 million compared to $9.3 million for the full year 2013.

Research and development (R&D) expenses
for the quarter ended December 31, 2014 were $25.9 million, including
$1.9 million of share-based compensation, compared to $14.3 million
including $1.6 million of share-based compensation for the same quarter
in 2013. R&D expenses for the full year ended December 31, 2014 were
$73.5 million, including $5.9 million of share-based compensation,
compared to $53.9 million including $5.8 million of share-based
compensation for the full year 2013.

Sales, general and administrative (SG&A) expenses
for the quarter ended December 31, 2014 were $56.5 million, including
$6.9 million of share-based compensation, compared to $47.0 million
including $5.6 million of share-based compensation for the same quarter
in 2013. SG&A expenses for the full year ended December 31, 2014 were
$201.8 million, including $23.5 million of share-based compensation,
compared to $185.5 million including $19.3 million of share-based
compensation for the full year 2013.

Benefit from (provision for) income taxes
for the quarter ended December 31, 2014 was $3.0 million of a benefit,
including $2.5 million of cash taxes, compared to $6.4 million of a
provision, including $0.9 million of cash taxes for the same quarter in
2013. Provision for income taxes for the full year ended December 31,
2014 was $10.3 million, including $4.4 million of cash taxes, compared
to $12.4 million, including $2.6 million of cash taxes for the full year
2013.

At December 31, 2014 the Company had cash, cash equivalents and
investments of $307.6 million.

Guidance for 2015

The following guidance does not include potential expenditures related
to the acquisition of new products or other business development
activities.

The Company expects AMPYRA 2015 full year net revenue of $405-$420
million.

In 2015, the Company expects ZANAFLEX franchise and ex-U.S. FAMPYRA
revenue of approximately $25 million, which includes sales of branded
ZANAFLEX products and royalties from ex-U.S. FAMPYRA and authorized
generic tizanidine hydrochloride capsules sales.

R&D expenses for the full year 2015 are expected to be $150-$160
million, excluding share-based compensation. The increase in R&D
expenses in 2015 is primarily related to Phase 3 studies of
dalfampridine and CVT-301. Additional expenses include continued
development of PLUMIAZTM (diazepam) Nasal Spray, clinical
trials for cimaglermin and rHIgM22, as well as ongoing preclinical
studies.

SG&A expenses for the full year 2015 are expected to be $180-$190
million, excluding share-based compensation.

AMPYRA Update

More than 65% of new AMPYRA patients currently enroll in First Step,
which provides two months of AMPYRA at no cost. The program is in its
fourth year, and data show that First Step participants have higher
compliance and persistency rates over time compared to non-First Step
patients.

More than 100,000 people with multiple sclerosis in the United States
have tried AMPYRA since its launch in 2010.

The Company received eight Paragraph IV Certification Notice Letters
advising that companies have submitted Abbreviated New Drug
Applications (ANDA) to the U.S. Food and Drug Administration (FDA)
requesting permission to manufacture and market a generic version of
AMPYRA. Acorda has filed patent infringement suits against all ANDA
filers to date, triggering a 30-month statutory stay period that
restricts FDA from approving an ANDA until July 2017 at the earliest,
unless a district court issues a decision adverse to all of Acorda’s
asserted Orange Book patents prior to that date.

In February 2015, a hedge fund filed an inter partes review
(IPR) petition with the U.S. Patent and Trademark Office, challenging
one of the five AMPYRA Orange Book-listed patents. The Company will
oppose the request to institute the IPR, and if it is allowed to
proceed, the Company will oppose the full proceeding. The 30-month
statutory stay period based on patent infringement suits filed by
Acorda against ANDA filers is not impacted by this filing, and remains
in effect.

Pipeline Update

In February 2015, the Company announced safety and tolerability data
from the first Phase 1 clinical trial of rHIgM22, a remyelinating
antibody for treatment of multiple sclerosis. The trial, which
followed participants for up to six months after receiving a single
dose of rHIgM22, found no dose-limiting toxicities at any of the five
dose levels studied. Based on these data, the Company plans to
initiate a second Phase 1 trial of rHIgM22 in 2015.

In December 2014, the Company initiated a Phase 3 clinical trial
studying the use of dalfampridine administered twice-daily (BID) to
improve walking in people who have experienced an ischemic stroke.

The Company initiated a Phase 3 clinical trial studying the use of
CVT-301 to treat OFF episodes in Parkinson’s disease in December 2014.

The Company announced it is deferring further development of NP-1998
for neuropathic pain in 2015.

The Company is continuing to work with the FDA to define the
additional clinical work necessary for the approval of PLUMIAZ.

Corporate Update

In October, the Company completed the acquisition of Civitas
Therapeutics, a privately-held biotechnology company, obtaining global
rights to CVT-301, CVT-427 and the proprietary ARCUS®
pulmonary delivery technology, including a manufacturing facility with
commercial-scale capabilities based in Chelsea, MA.

WEBCAST AND CONFERENCE CALL

Ron Cohen, President and Chief Executive Officer, and Michael Rogers,
Chief Financial Officer,will host a conference call today at
8:30 a.m. ET to review the Company’s fourth quarter and full year 2014
results.

To participate in the conference call, please dial 877-280-4956
(domestic) or 857-244-7313 (international) and reference the access code
67493058. The presentation will be available via a live webcast on the
Investors section of www.acorda.com.

A replay of the call will be available from 12:30 p.m. ET on February
12, 2015 until midnight on February 19, 2015. To access the replay,
please dial 888-286-8010 (domestic) or 617-801-6888 (international) and
reference the access code 15118889. The archived webcast will be
available for 30 days in the Investor Relations section of the Acorda
website at www.acorda.com.

Important Safety Information

Do not take AMPYRA if you:

have ever had a seizure,

have certain types of kidney problems, or

are allergic to dalfampridine (4-aminopyridine), the active ingredient
in AMPYRA.

Take AMPYRA exactly as prescribed by your doctor.

Before taking AMPYRA, tell your doctor if you:

have kidney problems or any other medical conditions;

are taking compounded 4-aminopyridine;

are pregnant or plan to become pregnant. It is not known if AMPYRA
will harm your unborn baby;

are breast-feeding or plan to breast-feed. It is not known if AMPYRA
passes into your breast milk. You and your doctor should decide if you
will take AMPYRA or breast-feed. You should not do both;

are taking any other medicines.

Stop taking AMPYRA and call your doctor right away if you have a seizure
while taking AMPYRA. You could have a seizure even if you never had a
seizure before. Your chance of having a seizure is higher if you take
too much AMPYRA or if your kidneys have a mild decrease of function,
which is common after age 50. Your doctor may do a blood test to check
how well your kidneys are working before you start AMPYRA.

AMPYRA should not be taken with other forms of 4-aminopyridine (4-AP,
fampridine), since the active ingredient is the same.

AMPYRA may cause serious side effects, including:

severe allergic reactions. Stop taking AMPYRA and call your doctor
right away or get emergency medical help if you have shortness of
breath or trouble breathing, swelling of your throat or tongue, or
hives;

AMPYRA is a potassium channel blocker approved as a treatment to improve
walking in patients with multiple sclerosis (MS). This was demonstrated
by an increase in walking speed. AMPYRA, which was previously referred
to as Fampridine-SR, is an extended release tablet formulation of
dalfampridine (4-aminopyridine, 4-AP), and is known as prolonged-,
modified, or sustained-release fampridine (FAMPYRA®) in some
countries outside the United States (U.S).

In laboratory studies, dalfampridine extended release tablets has been
found to improve impulse conduction in nerve fibers in which the
insulating layer, called myelin, has been damaged. AMPYRA is being
developed and commercialized in the U.S. by Acorda Therapeutics; FAMPYRA
is being developed and commercialized by Biogen Idec in markets outside
the U.S. based on a licensing agreement with Acorda. AMPYRA and FAMPRYA
are manufactured globally by Alkermes Pharma Ireland Limited, a
subsidiary of Alkermes plc, based on a supply agreement with Acorda.

AMPYRA is available by prescription in the United States. For more
information about AMPYRA, including patient assistance and co-pay
programs, healthcare professionals and people with MS can contact AMPYRA
Patient Support Services at 888-881-1918. AMPYRA Patient Support
Services is available Monday through Friday, from 8:00 a.m. to 8:00 p.m.
Eastern Time.

For full U.S. Prescribing Information and Medication Guide, please
visit: www.AMPYRA.com.

About Acorda Therapeutics

Founded in 1995, Acorda Therapeutics is a biotechnology company focused
on developing therapies that restore function and improve the lives of
people with neurological disorders. Acorda markets three FDA-approved
therapies, including AMPYRA® (dalfampridine) Extended Release Tablets,
10 mg, a treatment to improve walking in patients with multiple
sclerosis (MS), as demonstrated by an increase in walking speed. The
Company has one of the leading pipelines in the industry of novel
neurological therapies. Acorda is currently developing a number of
clinical and preclinical stage therapies. This pipeline addresses a
range of disorders including post-stroke walking deficits, Parkinson’s
disease, epilepsy, neuropathic pain, heart failure, MS, and spinal cord
injury. For more information, please visit the Company’s website at: www.acorda.com.

Forward-Looking Statements

This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical facts, regarding
management's expectations, beliefs, goals, plans or prospects should be
considered forward-looking. These statements are subject to risks and
uncertainties that could cause actual results to differ materially,
including the ability to realize the benefits anticipated from the
Civitas transaction and to successfully integrate Civitas' operations
into our operations; our ability to successfully market and sell Ampyra
in the U.S.; third party payers (including governmental agencies) may
not reimburse for the use of Ampyra or our other products at acceptable
rates or at all and may impose restrictive prior authorization
requirements that limit or block prescriptions; the risk of unfavorable
results from future studies of Ampyra or from our other research and
development programs, including CVT-301, Plumiaz, or any other acquired
or in-licensed programs; we may not be able to complete development of,
obtain regulatory approval for, or successfully market CVT-301, Plumiaz,
or any other products under development; we may need to raise additional
funds to finance our expanded operations and may not be able to do so on
acceptable terms; the occurrence of adverse safety events with our
products; delays in obtaining or failure to obtain regulatory approval
of or to successfully market Fampyra outside of the U.S. and our
dependence on our collaboration partner Biogen Idec in connection
therewith; competition; failure to protect our intellectual property, to
defend against the intellectual property claims of others or to obtain
third party intellectual property licenses needed for the
commercialization of our products; and, failure to comply with
regulatory requirements could result in adverse action by regulatory
agencies.

These and other risks are described in greater detail in Acorda
Therapeutics' filings with the Securities and Exchange Commission.
Acorda may not actually achieve the goals or plans described in its
forward-looking statements, and investors should not place undue
reliance on these statements. Forward-looking statements made in this
release are made only as of the date hereof, and Acorda disclaims any
intent or obligation to update any forward-looking statements as a
result of developments occurring after the date of this release.

Non-GAAP Financial Measures

This press release includes financial results prepared in accordance
with accounting principles generally accepted in the United States
(GAAP), and also certain historical and forward-looking non-GAAP
financial measures. In particular, Acorda has provided income, adjusted
to exclude the items below. These non-GAAP financial measures are not an
alternative for financial measures prepared in accordance with GAAP.
However, the Company believes the presentation of these non-GAAP
financial measures when viewed in conjunction with our GAAP results,
provide investors with a more meaningful understanding of our ongoing
and projected operating performance because they exclude (i) non-cash
charges and benefits that are substantially dependent on changes in the
market price of our common stock, (ii) non-cash interest charges related
to the accounting for our outstanding convertible debt which are in
excess of the actual interest expense owing on such convertible debt,
(iii) payments associated with acquisitions that are expenses that do
not arise from the ordinary course of our business, (iv) asset
impairment charges that do not arise from the ordinary course of our
business, (v) changes in fair value of acquired contingent consideration
which do not correlate to our actual cash payment obligations in the
current period or (vi) non-cash tax expenses related to our tax
accounting which do not correlate to our actual tax payment obligations.
The Company believes these non-GAAP financial measures help indicate
underlying trends in the company’s business and are important in
comparing current results with prior period results and understanding
projected operating performance. Also, management uses these non-GAAP
financial measures to establish budgets and operational goals, and to
manage the company’s business and to evaluate its performance. A
reconciliation of the historical non-GAAP financial results presented in
this release to our GAAP financial results is included in the attached
financial statements.

Financial Statements

Acorda Therapeutics, Inc.

Condensed Consolidated Balance Sheet Data

(in thousands)

(Unaudited)

December 31,

December 31,

2014

2013

Assets

Cash, cash equivalents, short-term and long-term investments

$

307,618

$

367,227

Trade receivable, net

32,211

30,784

Other current assets

24,052

17,135

Finished goods inventory

26,837

26,172

Deferred tax asset

18,420

127,299

Property and equipment, net

46,090

16,525

Goodwill

182,952

-

Intangible assets, net

432,822

17,459

Other assets

9,677

4,526

Total assets

$

1,080,679

$

607,127

Liabilities and stockholders' equity

Accounts payable, accrued expenses and other liabilities

$

73,869

$

53,491

Deferred product revenue

29,420

32,090

Current portion of deferred license revenue

9,057

9,057

Current portion of revenue interest liability

893

861

Current portion of notes payable

1,144

1,144

Convertible senior notes

287,699

-

Contingent consideration

52,600

-

Non-current portion of deferred license revenue

50,570

59,628

Deferred tax liability

23,885

-

Other long-term liabilities

11,287

10,503

Stockholders' equity

540,255

440,353

Total liabilities and stockholders' equity

$

1,080,679

$

607,127

Acorda Therapeutics, Inc.

Consolidated Statements of Operations

(in thousands, except per share amounts)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2014

2013

2014

2013

Revenues:

Net product revenues

$

110,630

$

86,348

$

373,292

$

310,317

Royalty revenues

4,978

3,981

19,131

17,056

License revenue

2,264

2,264

9,057

9,057

Total revenues

117,872

92,593

401,480

336,430

Costs and expenses:

Cost of sales

24,977

18,377

79,981

66,009

Cost of license revenue

158

158

634

634

Research and development

25,921

14,302

73,470

53,877

Selling, general and administrative

56,456

47,007

201,813

185,545

Asset Impairment

6,991

-

6,991

-

Change in fair value of acquired contingent consideration

2,200

-

2,200

-

Total operating expenses

116,703

79,844

365,089

306,065

Operating income

$

1,169

$

12,749

$

36,391

$

30,365

Other expense, net

(3,862

)

(119

)

(8,382

)

(1,502

)

Income (loss) before income taxes

(2,693

)

12,630

28,009

28,863

Benefit from (provision for) income taxes

3,024

(6,437

)

(10,337

)

(12,422

)

Net income

$

331

$

6,193

$

17,672

$

16,441

Net income per common share - basic

$

0.01

$

0.15

$

0.43

$

0.41

Net income per common share - diluted

$

0.01

$

0.15

$

0.42

$

0.39

Weighted average per common share - basic

41,532

40,713

41,150

40,208

Weighted average per common share - diluted

43,135

42,102

42,544

41,682

Acorda Therapeutics, Inc.

Non-GAAP Income and Income per Common Share Reconciliation

(in thousands, except per share amounts)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2014

2013

2014

2013

GAAP net income

$

331

$

6,193

$

17,672

$

16,441

Pro forma adjustments:

Non-cash interest expense (1)

2,065

-

4,291

-

Non-cash taxes (2)

(5,551

)

5,549

5,981

9,792

Acquisition related expenses in SG&A (3)

4,893

-

7,248

-

Asset Impairment (4)

6,991

-

6,991

-

Change in fair value of acquired contingent consideration (5)

2,200

-

2,200

-

Product related payments included in R&D (6)

-

-

-

1,000

Share-based compensation expenses included in R&D

1,851

1,559

5,939

5,804

Share-based compensation expenses included in SG&A

6,943

5,577

23,498

19,334

Total share-based compensation expenses

8,794

7,136

29,437

25,138

Total pro forma adjustments

19,392

12,685

56,148

35,930

Non-GAAP net income

$

19,723

$

18,878

$

73,820

$

52,371

Net income per common share - basic

$

0.47

$

0.46

$

1.79

$

1.30

Net income per common share - diluted

$

0.46

$

0.45

$

1.74

$

1.26

Weighted average per common share - basic

41,532

40,713

41,150

40,208

Weighted average per common share - diluted

43,135

42,102

42,544

41,682

(1) Non-cash interest expense related to convertible senior notes.

(2) $2.5 million and $0.9 million paid in cash taxes in the three months
ended 2014 and 2013, respectively, and $4.4 million and $2.6 million
paid in cash taxes in the twelve months ended 2014 and 2013,
respectively. 2013 revised to include non-cash tax adjustments to
conform with current year presentation.

(3) Deal related expenses for Civitas acquisition.

(4) Non-cash charge for NP-1998 impairment due to reprioritization of
R&D activities in Q4 2014.